You have the following information for CM Radio & Co. For the first six months of 2012: i. Cost and prices unchanged ii. Cost sales 25% and credit sales 75% iii. 60% of credit sales are collected in the month after sales, 30% in the second month and 10% in the third. No bad debts are anticipated. iv. Sales forecasts are as follows: $ $ October 2011 12, 000, 000 March 2012 8, 000,000 November 2011 14, 000, 000 April 2012 12,000,000 December 2011 16, 000, 000 May 2012 10,000,000 January 2012 6, 000, 000 June 2012 8,000,000 February 2012 8, 000, 000 July 2012 12,000,000 v. Gross profit margin 20% vi. Anticipated purchases: $ January 2012 6,400,000 February 2012 6,400, 000 March2012 9,600, 000 April 2012 8,000, 000 May 2012 6,400, 000 June 2012 9,600, 000 vii. Wages and salaries to be paid. $ January 2012 1,200, 000 February2012 1,600, 000 March 2012 2,000, 000 April 2012 2,000, 000 May 2012 1,600, 000 June 2012 1,400, 000 viii. Interest on $10, 000,000@12% on debentures is due by the end of march and June ix. Excise deposit due in April $2,000,000 x. Capital expenditure on plant and machinery planned for June $ 1, 200, 000 xi. Company can borrow on monthly basis. xii. Rent is $ 80,000 per month. REQUIRED: a. Prepare a cash budget of CM Radio & Co. on the basis of the above information for the first six months of 2012:(15 Marks) b. Discuss the importance of budgeting in organisations (5 Marks)